Consolidator Kingswood has bought two more advice businesses, JCH Investment Management (JCH) and Employee Benefit Solutions (EBS), in multi-million pound deals.
JCH manages clients predominantly across the Lincolnshire area. The team has three advisers and seven employees in total managing more than £105m of client assets for about 240 clients.
Kingswood said in the year ending 31 July 2022, Lincoln-based JCH generated revenue of £901,000 and profit before tax of £406,000.
The business, it added, would be acquired for total cash consideration of up to £3.5m, payable over a two-year period, £2.1m of which will be paid upon receipt of regulatory approval and the balance paid on a deferred basis which is subject to the achievement of pre-agreed performance targets.
Buckinghamshire-based EBS offers a range of financial planning services including; retirement planning, savings and investment advice, protection, and inheritance tax planning.
With three lead advisers and seven colleagues in total, EBS hold more than £135m in assets under administration. In the year ending March 2022 EBS generated revenue of £1.56m and profit before tax of £806,000, the consolidator said.
The business will be acquired for total cash consideration of up to £5.08m, payable over a five-year period. £2.75m will be paid at closing and the balance paid on a deferred basis, it confirmed.
Kingswood UK chief executive David Lawrence said: "I'm delighted by the ever-expanding footprint of Kingswood into new counties, as well as announcing the acquisition of JCH today, the completion of EBS also takes us into a new county.
"For over 30 years, EBS have a long-established presence in Buckinghamshire. They have a simple aim; to make complicated financial matters as simple as possible to help clients meet their goals and make their life as easy as possible. This mirrors what we strive for at Kingswood.
"We have a strong pipeline of activity, with a further five potential acquisitions in exclusive due diligence. Our near-term target is to build our UK AUA/M in excess of £10bn and £14bn globally."
He added: "Over many years JCH, led by John Hebblethwaite, has built deep and enduring relationships with their clients and John and his team have a strong cultural alignment with Kingswood.
"This acquisition also allows us to consolidate our existing footprint in Lincolnshire and in doing so create a scalable hub from which to grow. On completion, the existing Kingswood team will co-locate with the JCH team in the JCH premises.
"Kingswood continues to be an acquisitive business and has a further five purchase transactions under exclusive due diligence that we expect to close in the coming months."
